Insider Speaks Out About Private Health Care Industry
July 12,2009 
By Ben Cohen
For those of you still wedded to the idea that private health insurance is the best way to get people the health care they need, please take the time to watch this fascinating interview with former head of corporate communications for CIGNA Wendell Potter (h/t Chez Pazienza).
Bill Moyers talks with Potter on the structure of the industry that puts profit over people and denies sick people crucial care. Here's an interesting exchange on why the insurance industry is so opposed to a public plan:
WENDELL POTTER: Absolutely right. It's the way the American system has evolved, the political system.
But it does offend me, that the vested special interests, who are so
profitable and so powerful, are able to influence public policy in the
way that they have, and the way that they've done over the years. And
the insurance industry has been one of the most successful, in beating
back any kinds of legislation that would hinder or affect the
profitability of the companies.
BILL MOYERS: Why is public insurance, a public option, so fiercely opposed by the industry?
WENDELL POTTER:
The industry doesn't want to have any competitor. In fact, over the
course of the last few years, has been shrinking the number of
competitors through a lot of acquisitions and mergers. So first of all,
they don't want any more competition period. They certainly don't want
it from a government plan that might be operating more efficiently than
they are, that they operate. The Medicare program that we have here is
a government-run program that has administrative expenses that are like
three percent or so.
BILL MOYERS: Compared to the industry's–
WENDELL POTTER:
They spend about 20 cents of every premium dollar on overhead, which is
administrative expense or profit. So they don't want to compete against
a more efficient competitor.
So, the private sector is afraid of the public sector because it would be more efficient? It goes to show you how ridiculous the idea that the 'free market' works best in providing people health care. It doesn't, and the private sector knows it. That's why they're spending millions of dollars convincing everyone that it is. For more on how to help fight the corporations, go here:
By Ben Cohen
For those of you still wedded to the idea that private health insurance is the best way to get people the health care they need, please take the time to watch this fascinating interview with former head of corporate communications for CIGNA Wendell Potter (h/t Chez Pazienza).
Bill Moyers talks with Potter on the structure of the industry that puts profit over people and denies sick people crucial care. Here's an interesting exchange on why the insurance industry is so opposed to a public plan:
WENDELL POTTER: Absolutely right. It's the way the American system has evolved, the political system.
But it does offend me, that the vested special interests, who are so
profitable and so powerful, are able to influence public policy in the
way that they have, and the way that they've done over the years. And
the insurance industry has been one of the most successful, in beating
back any kinds of legislation that would hinder or affect the
profitability of the companies.BILL MOYERS: Why is public insurance, a public option, so fiercely opposed by the industry?
WENDELL POTTER:
The industry doesn't want to have any competitor. In fact, over the
course of the last few years, has been shrinking the number of
competitors through a lot of acquisitions and mergers. So first of all,
they don't want any more competition period. They certainly don't want
it from a government plan that might be operating more efficiently than
they are, that they operate. The Medicare program that we have here is
a government-run program that has administrative expenses that are like
three percent or so.BILL MOYERS: Compared to the industry's–
WENDELL POTTER:
They spend about 20 cents of every premium dollar on overhead, which is
administrative expense or profit. So they don't want to compete against
a more efficient competitor.
So, the private sector is afraid of the public sector because it would be more efficient? It goes to show you how ridiculous the idea that the 'free market' works best in providing people health care. It doesn't, and the private sector knows it. That's why they're spending millions of dollars convincing everyone that it is. For more on how to help fight the corporations, go here:
Lead story in my local paper today:
“White and others in the health care profession locally say they are concerned about mounting debt, an unfair Medicare reimbursement formula that pays area hospitals less for performing the same medical procedures, rising indigent care costs, aging hospitals and inability to always purchase the most modern equipment.
“Most will tell you quality medical care is available in the Shoals, but they fear what’s ahead if something is not changed – and soon.”
Apparently, the free market isn’t working out so well.